The Lambda Sensor warning light has been telling me that somethings wrong, pretty much ever since I swapped the engine in the Volvo.
Due to both a mental block and a lack of time I hadn't done anything about until a couple of days ago. When I asked at my local autofactors if they could read the code for me, I was informed by their Volvo expert that our car most likely had a built in fault code indicator.
A quick internet search and a more detailed read in the Manual and I found out that what I was looking for was located on the front of the LH side suspension turret.

All I had to do was,
- Take the lid off
- Plug the flying lead into hole number 6 (for ignition faults)
- Turn the ignition on.
- Press the button for 1 sec
- Count the number of times the LED flashes (Three groups of flashes giving a 3 digit number).
- Then Turn the ignition off, plug the flying lead into hole number 2 (for Fuel system faults) and repeat.

Doing this gave me code 143 for Ignition and 111 for Fuel system.
111 is no Fault and 143 is knock sensor.
So off I went to the original block, removed the knock sensor and set about swapping out the one on the new engine, only to find out that the lead had fallen off and can't have ever been plugged in properly. Not surprisingly, after plugging the sensor in the fault vanished and the light went out!